forestrunner
New Member
Partner A and Partner B both own 50% of an LLC company. Partner A gets a loan from family in order for the business to pay off an immediate debt. Partner A has Partner B sign an agreement that if the business or Partner B cannot pay back Partner A within 30 days, then Partner B's ownership will transfer to Partner A.
1. If the LLC has debts (bank line of credit loans, tax liability, ownership of property under the LLC) what is Partner B's obligation to these debts now that Partner A is the sole owner of the LLC?
2. What steps does Partner B need to take to protect himself from any business debts that he was personally liable for?
3. Partner A contends that Partner B is still fully liable for all past debts and must work to absolve these debts of the business.
Thoughts or suggestions?
1. If the LLC has debts (bank line of credit loans, tax liability, ownership of property under the LLC) what is Partner B's obligation to these debts now that Partner A is the sole owner of the LLC?
2. What steps does Partner B need to take to protect himself from any business debts that he was personally liable for?
3. Partner A contends that Partner B is still fully liable for all past debts and must work to absolve these debts of the business.
Thoughts or suggestions?